Finance Act 1995

Payments to which provision for deductions applies

1 (1) In subsection (1) of section 559 of the Taxes Act 1988 (payments from which deductions are made), for “subsection (2) below” there shall be substituted “subsections (2) and (3A) below”.

(2) Subsection (3) of that section (limit on payments exempted where a guarantee has been given or the recipient is a school leaver) shall not apply in relation to payments made to a person in any case where that person’s certificate under section 561 of that Act is one issued or renewed with respect to a period beginning on or after the appointed day.

(3) Before subsection (4) of that section there shall be inserted the following subsection—

“(3A) Subsection (1) above shall not apply to a payment made under any contract if such conditions as may be prescribed in regulations made by the Board are satisfied in relation to the payment and the person making it.”

(4) Sub-paragraphs (1) and (3) above shall have effect in relation to payments made on or after the appointed day.